The German Development Bank (KfW) has signed an agreement with the Serbian Entrepreneurship Foundation (SEF) for a €10.13 million loan aimed at supporting micro, small and medium-sized enterprises (MSMEs) in Serbia.
The funds for this program are provided by the EU, and the loans will be available to the MSME sector through commercial banks, with SEF offering the necessary guarantee mechanism.
“The goal of the program is to support manufacturing companies, businesses in rural areas, and startups by providing adequate guarantee support to partner banks that will finance these groups of clients. We are grateful to the European Union for the allocated funds and to KfW for involving the Serbian Entrepreneurship Foundation in this program,” said Aleksandar Grabovac, SEF’s managing director, who signed the agreement with Carsten Sandhop, the director of the German Development Bank’s Belgrade office.
SEF was established in 2019 by KfW and the Serbian Chamber of Commerce, with the aim of facilitating access to financing for micro, small, and medium-sized businesses, as well as startups, in Serbia, as reported by Beta.
Through its startup support program, nearly 2,000 entrepreneurs have received loans from commercial banks, along with grant disbursements for those who have repaid their loans regularly.
In parallel with this program, SEF also implemented a support program for small and medium-sized enterprises that were impacted by the COVID-19 pandemic. SEF, through its partner banks, directly supported 850 businesses, entrepreneurs and registered agricultural households.
“Enterprises in this sector, like anywhere in the world, cannot navigate the most vulnerable stages of their growth alone. They must be supported by a serious state like ours, and behind a serious state, as a result of a clear national stance and an entirely open agenda for the future, stand international organizations tasked with establishing balance in the development of all regions of Europe,” stated the Minister of Economy, Adriana Mesarović.
Emmanuel Gioffre, Head of the EU Delegation to Serbia, emphasized that small and medium-sized enterprises are the backbone of any growing economy, driving innovation, creating jobs and contributing to overall economic growth and stability.
“The resilience of these businesses is key to the ongoing progress of any country. We want businesses in Serbia to one day become EU businesses, which is why we are working on building their capacity,” said Gioffre.
Germany is one of Serbia’s most significant economic partners and one of the largest investors in the Serbian economy, also providing strong support for investments in small and medium-sized enterprises.
“The EU and Germany are collaborating with Serbia to strengthen micro, small, and medium-sized enterprises. Our grant funding for SEF facilitates access to finance for the MSME sector, while on the other hand, we encourage banks to offer financial and non-financial services to this segment of the economy. Our goal is to support the growth of local Serbian entrepreneurs and increase employment opportunities,” said German Ambassador Anke Konrad.
She also noted that SEF has supported 2,800 small and medium-sized enterprises and helped create or preserve nearly 10,000 jobs.
